Wonji manufacturing company Youngpoong Paper (CEO Jo Sang-jong) announced on the 4th that it will proceed with a bonus issue by allocating 1.5 new shares per existing share.
A bonus issue increases capital by issuing shares based on surplus funds such as capital surplus and revaluation reserves, and distributes the newly listed shares to shareholders at a certain ratio.
The total number of newly issued shares for this bonus issue is 26,500,986 shares, with the record date for new share allocation set for April 20, and the listing date scheduled for May 12. The allocation target is shareholders registered in the shareholder registry as of the record date holding voting shares. The company plans to use revaluation reserves and other funds it holds as resources for the bonus issue.
A company official stated, “This bonus issue was decided not only to activate trading by increasing the number of circulating shares but also to enhance shareholder value.”
Youngpoong Paper was acquired by Daeyang Metal last November, and as of the end of last year, the company’s stock composition was approximately 50% held by the largest shareholder, about 20% treasury stock, and about 30% circulating shares. On March 30, the company decided to cancel 2,313,838 shares, equivalent to about 10.4% of the 20% treasury stock it held, and completed the cancellation on the 3rd.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
